why are investors interested in lagos state ?
Lagos State is home to a multitude of multinational companies because of its favourable economic conditions and vast population. This combination provides a large market for any product or service that is launched in the state.
Lagos is Nigeria’s commercial and industrial hub and a key driver of economic growth for Nigeria as a whole. Over 50% of Nigeria’s industrial capacity is located in Lagos, with a variety of manufactured goods being produced in the city, including electronic equipment, machinery, foodstuffs, beverages and chemicals.
Below are some of the major reasons for investing in Lagos:
Ease of starting a business
Availability of cheap & highly skilled labour
Access to different markets locally & internationally
Competitive Tax Rates
Stable Political Environment
Safe & Efficient Banking Network
Changing Consumer Patterns
Large population of high and middle income earners
Lagos state tax system remains a fulcrum for business development
All Limited Liability Corporations are required to pay their taxes to the Federal Government (FG) through the Federal Inland Revenue Service (FIRS)
Key taxes to note include:
- Business Premises Levy is N10,000 for registration with an annual renewal fee of N5,000
- Pay As You Earn states that it is the duty of the employer to remit its employees tax to LIRS
- Capital Gains Tax is paid on the sale of a qualifying capital expenditure
- Other forms of taxes include Withholding tax with varying rate depending on type of transaction, Advertising tax, Social Security contributions.
There are 17 forms of taxes in Lagos State and 47 different payments to be made to remit all taxes. It takes about 6 weeks to compute and file taxes annually